reverse charge

reverse charge applicable in sez unit?
Replies (1)
Being in a SEZ can be advantageous to a certain extent when it comes to taxes. Any supply of goods or services or both to a Special Economic Zone developer/unit will be considered to be a zero-rated supply. That means these supplies attract Zero tax rate under GST. In other words, supplies into SEZ are exempt from GST and are considered as exports.

Therefore, the suppliers supplying goods to SEZs can:

Supply under bond or LUT without payment of IGST and claim credit of ITC; or
Supply on payment of IGST and claim refund of taxes paid.

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